Dollar Tumbles to Seven-Week Low as Weak Payroll Report Boosts Gold

The US dollar has fallen to a seven-week low following the release of a weak July payroll report, which showed an unexpected decline in nonfarm payrolls and a smaller-than-expected increase in average hourly earnings.

This development has led to increased speculation that the Federal Reserve may ease monetary policy, which is bullish for precious metals. As a result, gold prices have soared to a seven-week high, with October COMEX gold up 2.30% to $1,986.20 per ounce.

The euro has also benefited from the dollar's decline, rising to a seven-week high against the US currency. The European Central Bank is expected to raise interest rates at its next policy meeting on September 10, with markets assigning an 85% probability of a +25 basis point rate hike.